ustralian-based bank, , Commonwealth Bank Group
(CBA), has announced the sale of its Ho Chi Minh
City branch to Vietnam International Bank (VIB), one
of Vietnam’s leading bank for commercial joint stock. CBA
commenced its banking activities in Vietnam back in 2008. Two
years later, the bank established a strategic partnership with
VIB where CBA acquired a proportion of 20% in VIB’s stake.
General Manager of CBA Vietnam, Steve Ellis mentioned that
this decision signifies CBA’s commitment to the Vietnamese
market by strengthening the partnership with VIB and that it
also demonstrates CBA’s confidence in VIB’s ability to continue
providing high-quality customer service.
The approval of this sale was given by the State Bank of Vietnam
and while the value of the transaction was not disclosed, the
banks expect the sale process to be completed in the third
quarter of this year. CBA will be contacting its customers to
ensure a smooth transition of their banking relationship to
VIB. Additionally, CBA’s representative office in Hanoi would be
retained to serve as a liaison with the corporations, financial
institutions, and government agencies in Vietnam.

Source: VIB

With the purchase of CBA’s Ho Chi
Minh City branch which catered
to the needs of about 20,000
customers, VIB will be able to tap on
the increased customer base to grow
its core retail banking business.
According to RFi Group data, VIB currently has a market
penetration of 5% in Vietnam’s Retail Banking Sector (Vietnam
Retail Banking Council, H1 2017) and with the purchase of
CBA’s Ho Chi Minh City branch which catered to the needs of
about 20,000 customers, VIB will be able to tap on the increased
customer base to grow its core retail banking business.